Primark's Swedish Expansion: A Joint Venture Analysis

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Business expansion of Primark in Sweden: the risks and
benefits of a joint business venture to enter international
markets
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Table of Contents
Introduction................................................................................................................................3
Task 1: Project Plan...................................................................................................................4
Task 2. Research Report.........................................................................................................10
Conclusion................................................................................................................................22
Reference List..........................................................................................................................23
Appendices...............................................................................................................................25
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Introduction
It is seen that the management of different organisations take the matters on a serious note
and expense a lot in the business expansion segment. The company that has been taken into
consideration in this segment is the subsidiary of Associated British Foods, named Primark. It
is one of the reputed names in the retail business domain. The headquarter is situated in the
hearts of Dublin, Ireland and it is considered among the trailblazers of the segment. In the
following segment, a detailed discussion will be provided on the merger related issues, as
well as benefits. For this purpose a proper project plan and research report will be provided.
For data collection, a proper primary research is going to be taken into consideration as well.
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Task 1: Project Plan
A brief explanation of the proposed topic and why you have chosen it
Project Definition
Project is regarded as the planned set of interrelated activities or tasks to be executed on a
limited time span as well as within other several limitations. In simple words, project refers to
collaborative enterprise, involving design or research, which is planned carefully for
accomplishing a specified aim. In this study, a business project will be developed in order to
recognise the impacts of globalisation and benefits of joint ventures upon the retail industry,
especially upon the Primark to expand business at international location.
Problem Statement
In order to carry out all the activities related to business project in effective manner, this is
such important to identify first the requirements of the business project. Determining the
appropriate methods of analysis, which will such assist the project to improve its activities
effectively. Globalisation has both positive and negative impacts over the business
organizations such as Primark (Cavusgil et al., 2014). Therefore, understanding the positive
and negative impacts of globalisation and analysing the benefits as well as drawbacks of joint
ventures is such important for better completion of this project.
Project Strategy
Through using the appropriate strategies and methods, this is possible to complete a business
project in appropriate manner. In order to carry out this business project in appropriate
manner, various effective methods have been selected based on the requirements of the
project (Turner, 2014). Resources that are available is another important consideration.
Methods that have been chosen for this specific business project are as follows:
 In this business project, primary data collection method has been selected to use for
gathering the most authentic data related to the topic.
 Data and information that has been collected from the managers will be analysed through
using qualitative analysis.
An aim and some objectives for your proposed research
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Project Aim
The aim of the research is to find out the risks and benefits Primark is going to face when it
will go in a joint venture with H&M in the Swedish territory.
Project Objective
Project objectives refer to the set activities that are required to be done for completion of the
project. In other words, project objectives are regarded as the concrete statements, which
describes all the targets or goals that a project is trying to accomplish (Jeston, 2014). All the
goals are set for the completion of this project are SMART objectives. The objectives are
given in the following part for better understanding of the matters.
 To identify the issues and benefits those are going to be faced by Primark in a joint
business venture with H&M.
 To critically analyse the impact of issues and benefits in a joint business venture on
the financial condition of Primark.
 To recommend steps necessary for betterment of the condition of Primark.
A brief discussion of the scope and limitations of the project
Quality management
Managing the quality of exhaustive activities within the project is such required for achieving
the expected quality and success in the project. Authentication of the collected information is
one of the important considerations (Goetsch and Davis, 2014). Proper implementation of the
tools and statistics, evaluation of data is regarded as the important element of managing the
quality of a project.
Scope
Included Scope
The included scope of this project is influence of globalisation upon business operations of
Primark and benefits of joint venture at international business expansions.
Excluded Scope
The business project will exclude the negative impacts of globalisation upon the business
organizations and drawbacks of joint ventures at international level.
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Success Criteria
Through gathering the most authentic data, analysing the collected data in appropriate
manner and using the proper methodologies, this is possible o develop a business project
effectively. All the resources will be used in appropriate manner for better completion of this
project.
Cost analysis
Activities Duration (hours) Cost/Hour (£) Total cost of
the activity (£)
Collection of appropriate data
and related information
440 10 4400
Appropriate analysis of the
collected data
350 12 4200
Proper identification of the
issues
280 10 2800
Making proper solution of the
identified issues
300 12 3600
Completion of the final project
report
150 10 1500
Total=£165,00
Figure 1: Cost analysis
(Source: Created by learner)
Communication Plan
What Why Who When How
Making
contacts with
the managers
To gather the
most authentic
information
Managers of
Primark
During the
business project
Through
arranging
interview
programs
Documentation
of the project
Project
submission
Project manager After completing
the exhaustive
activities
Available
journals, articles
and books
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Table 2: Communication plan
(Source: Created by learner)
Monitoring Plan
Activities Examination of activities
Developing aims and objectives of the project Project manager
Appropriate determination of the research
project
Project manager
Data collection Team members and project manager
Data analysis Team members and project manager
Making proper conclusion of the project Project manager
Making proper recommendation Project manager
Table 3: Monitoring plan
(Source: created by learner)
Work breakdown structure
Activity
Start
Date
Duratio
n
End
Date
Making decision over selection of the topic 2/5/2019 4 2/9/2019
making appropriate aims and objectives 2/9/2019 3
2/12/201
9
Conducting Literature review
2/12/201
9 7
2/19/201
9
Selection of the proper methodologies of the
research
2/19/201
9 3
2/22/201
9
Primary data collection
2/22/201
9 8 3/2/2019
Appropriate analysis of the collected data 3/2/2019 6 3/8/2019
conclusion and making proper recommendations 3/8/2019 4
3/12/201
9
Documenting
3/12/201
9 3
3/15/201
9
Submission of the final report
3/15/201
9 1
3/16/201
9
Table 4: Work break down structure
(Source: Created by learner)
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Gantt chart
Making decission over selection of the topic
making appropiate aims and objectives
Conducting Literature review
Selelction of the proper methodologies of the research
Primary data collection
Appropiate analysis of the collected data
conclusion and mmaking proper recommendations
Documenting
Submission of the final report
2/2 2/7 2/12 2/17 2/22 2/27 3/4 3/9 3/14 3/19
Figure 1: Gantt Chart
(Source: Created by learner)
A risk register covering the main risks with the proposed research
Identified risk Type of risks Influence
of risk
Influence over
project
Action for
resolve
Risk of improper
data
Low Medium Due to unauthentic
data, the entire
business project
can lead towards
blunder. Collection
of proper and
authentic data is
important for
making proper
conclusion of the
project.
Data collection
process
requires to be
monitored
more
effectively to
gather most
authentic data
over the topic.
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Financial risk Medium High Financial risk is
one of the most
common risks in a
business project.
Every project
requires adequate
amount of capital to
conduct and
successfully
complete their
activities.
Therefore, due to
lack of proper
financial resources,
a business project
and all its
operations can be
stopped as well.
Before
stepping into
the business
project, make
sure that all
capital
resources are
effective,
active and
supportive.
Lack of team
coordination
Low Medium Due to lack of
coordination skill, a
business project
may take more time
to complete.
Productivity and
performance
standard may
decrees due to lack
of coordination
skill.
For resolving
these issues,
project
manager
requires
arranging more
numbers of
effective
training
programmes.
Task 4: Risk assessments
(Source: Created by learner)
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Task 2 Research Report
CHAPTER 1 Introduction
In order to conduct the research a proper kind of management plan is necessary. It is an
important thing to be taken into consideration. The different aspects of the project are going
to be taken care of and a better modification can be addressed as well in this part. Apart from
this the aim of the research and the objects are going to be detailed too. This is going to
provide a proper direction to the researcher, which will be a beneficial thing for any kind of
project development and data gathering.
Background of the research
The research is going to focus on the aspects of globalisation because in the modern business
environment it is one of the most important aspects to be taken into consideration. The
business-providing organisation that has been taken in this case is Primark. The company is
planning to go for a joint business venture with the Swedish company H&M. The issues that
are being faced by the rest of the companies are going to be analysed in the research to
provide a proper direction of approach to the people (Afzal et al., 2018).
The issues associated with the business ventures are going to be taken into consideration in
this segment and the benefits of a merger will be addressed too. This is going to be a
proficient research, highlighting on the aspects of globalisation and the issues being faced by
the companies involved in this. The company has different countries under its service
providing area list but it is has no idea about the Swedish environment. The information
related to market is an important thing for any of the service provider. The majority of the
cases it is seen that the issues associated with the proper kind of project management can only
be addressed if knowledge is derived properly (Anderson and Burney, 2018). The best option
is having better idea of what needs to be done in order to make good return on investment.
The knowledge gathering and getting a proper penetration in the Swedish market is the main
objective of the research. Apart from this, the issues are going to be analysed as well in order
to make proper kind of betterment in the approach process.
Project Aim
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The aim of the research is to find out the risks and benefits Primark is going to face when it
will go in a joint venture with H&M in the Swedish territory.
Project Objective
There are some objectives that have to be fulfilled in order to meet the aim of the research
and in the end; the research is going to be a successful one. The objectives are designed in
accordance with the research requirement. The objectives are given in the following part for
better understanding of the matters.
 To identify the issues and benefits that is going to be faced by Primark in a joint
business venture with H&M.
 To critically analyse the impact of issues and benefits in a joint business venture on
the financial condition of Primark.
 To recommend steps necessary for betterment of the condition of Primark.
Scope and Limitation of the research
Research Scope
The research is going to find the issues that are needed to be minimised as well in order to
make betterment in the business deliverables. The majority of the cases it is seen that the
issues associated with the globalisation and the understanding phase are disregarded by the
researchers. The researcher is going to provide an idea of what needs to be done in order to
make proficient development in the particular joint ventures. The benefits of a joint business
venture are going to be derived in this project. Proper recommendations are going to be
provided in accordance with the output, which is going to be a beneficial factor for the entire
business expansion phase.
The majority of the cases it is seen that the issues have the potential to nullify the positive
points. The required modifications are going to be derived as well, which will be a beneficial
factor for the entire management process. There is a good chance of having issues and the
recommendations are going to be added to it. in the end of the research a better kind of
evaluation is going to be done as well which will be required for justified approach in the
future by the companies which are planning to make a proper approach.
Limitation of the research
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The research is going to focus mainly on the aspects that are associated with the globalisation
and business expansion. The research is going to provide an insider knowledge of the issues
that are being faced during the process. The research is going to provide issues and benefits
related information for which the management needs to make proper kind of alterations in the
approach process. The research is going to provide any background detail of the business
expansion aspect. Apart from this, the research is not going to provide information associated
with the future development needs in the business expansion aspect. The research is
unidirectional to the aspect of business expansion related with globalisation. There are other
sides of globalisation like cultural understanding and societal development, which will not be
discussed in this research.
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